Outline four skills and benefits that Okoth, a student would get from studying business.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

Identify the type of business environment represented by each of the following factors

Highlight three reasons why human beings should make choices between competing needs.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

For each of the following occupations, mention the level of production that relates to each.

State four roles played by entrepreneurs to the economy of a country
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

Mention five ways in which the government participates in the operations of a state
corporation.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...
e)……………………………………………………………………………………………………

Outline four advantages of a sole proprietorship form of business ownership.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

Name four laws enacted by the government to protect consumers.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

State four reasons why the short message service (SMS) is replacing letters as a way of
communication.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

For each of the following means of transport show the unit of carriage used.

Give four reasons why warehousing is very important in a country’s economy.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

State four factors that determine the amount of premium in life assurance.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...

Give four factors that may cause decrease of goods in the market. (4 marks)
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

List four sources of internal economies of seale.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

State four reasons that makes government to create monopolies.
a)…………………………………………………………………………………………………....

b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

a) State the shortest channel of distribution of imported goods. (1 mark)
………………………………………………………………………………………………………
b) Give three circumstances under which this channel may be preferred. (3 marks)
i)…………………………………………………………………………………………………....
ii) …………………………………………………………………………………………………...
iii) …………………………………………………………………………………………………..

Outline four factors that may cause change in capital in an ongoing business.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

Enter the following transactions into a two column cash book for Jaribu traders and balance it
off.

1^st April 2008 - Cash balance Kshs 2,500
-Cash at bank Kshs 12,450

4^th April 2008 - Paid Musau a creditor Kshs 1800 cash

7^th April 2008 - Sold goods on credit worth Kshs 10,000 to maimam
traders

11^th April 2008 - Paid salaries by cheque sh 6500

12^th April 2008 -Withdrew Kshs 9,540 from the bank for office use.

Outline four factors that have contributed to the failure of measures being taken by
the government to control rapid population growth rate.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

The following information was extracted from books of Kithae traders on 30th June
2010.

Prepare a trading account to determine
a) Closing stock
b) Cost of goods sold
c) Gross profit.

Highlight four reasons why small scale traders prefer borrowing from micro finance.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...

c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...

The Kenya shilling has been depreciating against major international currencies. Highlight
four disadvantages of this depreciation of the currency.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...
d) …………………………………………………………………………………………………...
​

Give three reasons for taxation.
a)…………………………………………………………………………………………………....
b) …………………………………………………………………………………………………...
c) …………………………………………………………………………………………………...

Explain briefly the significance of the following terms of sale.
i) LOCO…………………………………………………………………………………………....
ii) ONO…………………………………………………………………………………………...
iii) FRANCO……………………………………………………………………………………...
iv)FOB……………………………………………………………………………………………...

The following data was extracted from the books of Racheal’s boutique as at 31^st September

Required:
Prepare Racheal’s trial balances as at the end of September. (5 marks)